Institutional Presentation FY 2017

Transcription

1 Institutional Presentation Institutional Presentation FY 2017 March

2 Corporate Structure 100% 100% 43,4% 63.7% Farms in Farms in Farms in ARGENTINA BOLIVIA BRASIL 100% 59.59% 100% Farms in PARAGUAY 94.61% 68.30% 29.91% * IFISA owns a 31.7% stake in IDBD 2

3 Pioneer Agribusiness Company with 80 years of history 1936 Founded as a subsidiary of a Belgium company that provided rural loans in Argentina 1994 Mr. Eduardo Elsztain Appointed Chairman & Mr. Alejandro Elsztain CEO 1 ST Follow on for USD 64 M 1998 Farmland Purchases in Argentina ~ 9,000 ha Main Acquisition Agroriego San Luis REGIONALIZATION 2006 Expansion to Brazil IPO for USD 276 M Listed in Novo Mercado 2008 Expansion to Bolivia & Paraguay Follow on for USD 288 M / Listed in the local stock exchange and spun-off ot its parent company 1994: 7 Farms 20,000 has st Latam Agricultural Company listed in the US 2 nd Follow on for USD 92 million Farmland Purchases & Sales in Argentina Investment in the leader real estate company in Argentina 22.4% 2012 Brasilagro listed in NYSE 1 ST brasilian agricultural company listed abroad 2017: ~ 800,000 has in 24 farms 1,235 employees in agriculture related operations 3 leading farmland development cases in Harvard Business School Due Dilligence for more than 4 million ha in the region Sold Paraguay to Brasilagro nvestmenti through IRSA 63.7% 3 6

4 Agribusiness Market s Strengths 3%* Lack of Supply Only 3% of the surface of the Earth would be land available for agriculture Excess of Demand 9 Bn inhabitants to be fed by 2050 mostly coming from developing countries Increase in areas Productivity Gain From 1967 to 1987 From 1987 to 2007 From 2007 to ,7% 60,6% 38,8% 24,3% 39,4% 61,2% Productivity Increase not Enough The increase in the demand for food will need an expansion of productive areas (108 mm ha) South America Strenghts The region has the main resources (land & water) to meet the increasing demand

5 Few Listed Companies in the Region with different business models Return High Mid Low Benefit from farmland price appreciation Acquire & Lease Acquire & Plant Lease & Plant Acquire & develop the land Operational gains Commited capital High High Low High Acquire & Develop the Land Lease & Plant Pioneer in Farmland Development Acquire & Plant Acquire & Lease Low Mid High Replicating it s business model in Brazil, Bolivia & Paraguay Risk

6 Value Creation ROIC CRESUD Business Strategy FARMLAND DEVELOPMENT FARMING ACTIVITY Urban Property Agriculture Specialties / Agriculture Stable Yielding Farmland Development Cattle Farming Activity Bare Land Time Time 6

7 Current Portfolio Breakdown FY 2017 In Hectares By type of property By country 132,000 16% 83,466 10% 7,773 1% 624,770 74% 9,875 1% 166,169 20% 59,490 7% 612,435 72% Owned Leased Leased to 3rd parties Long Term concession Argentina Brasil Bolivia Paraguay By use of the land By productive activity 471,437 56% 376,532 44% 86,036 23% 102,516 27% 187,981 50% Productive Reserve Agriculture Cattle Others (Milk & Wool) 7

8 CRESUD Diversified Rural Portfolio ~ 800,000 ha hectares under management in the Region Planted Area & Breakdown (in K ha) BOLIVIA BRAZIL farms 9,875 ha 7 farms 139,451 ha SOYBEAN, CORN & SUGARCANE ARGENTINA SOYBEAN, CORN & SUGARCANE PARAGUAY FY 14 FY15 FY16 FY17 Brazil Bolivia Paraguay Total 7% 4% 15% 38% 13 farms 555,687 ha (*) 1 farms 59,490 ha 2% 4% SOYBEAN, CORN 30% MEAT & MILK SOYBEAN & MEAT Soybean Corn (*) Includes ha under concession in Argentina Wheat Sunflower Sugarcane Others LEASING AS COMPLEMENTARY BUSINESS ( ha in Argentina & Brasil) Leased to 3rd parties 8

9 Regional Farmland Prices USD/ha Argentina - Corn Belt Brasil Corn Belt Paraguay Corn Belt Bolivia Corn Belt Avg. 2 Farms / year Profits ~ 200% over BV Farmland Sales USD millon 133,8 Profit USD M Sales USD M 9,0 10,7 4,3 1,4 10,3 5,2 9,7 7,6 0,5 3,0 3,9 1,7 0,6 6,9 3,2 7,2 6,6 0,3 3,5 20,6 26,1 13, ,7 27,8 21,3 13,1 72,1-34,1 19,

10 Portfolio Evolution FY17 Acquisitions Sales Portfolio Evolution (Owned and Long term Lease Th. ha) 17,6 2,9 0,1 1,6 0,6 2,7 9, Total Ha FY 2016 Acquisition Sao Jose El Invierno y La Esperanza Sale Mendoza Farmland Sale Partial Sale Araucaria Partial sale Jatobá Cuatro Vientos Farm Total Ha FY 2017 Subsequent Sale: La Esmeralda Proyected Ha FY

11 Farmland Acquisition during FY17 São José Farm (São Raimundo das Mangabeiras/MA) Farm São José Balsas Acquisition Farm São José Lease & Partnership Location: São Raimundo das Mangabeiras/MA Total Area: 17,566 ha Arable: 10,000 ha Project: Grains, Sugarcane Value: R$ 100 million (R$/arable ha 10,000) Arable Area: 15,000 hectares Project : Sugarcane Value: 10% of the total supply 11

12 Regional Farmland Sales during FY 2017 Farmland Sales in Argentina & Bolivia (USD million) 4,1% 6 2,2 5 1,1 1 1,1 11% 11% 14,2 4,5 El Invierno y La Esperanza (July '16) Finca Mendoza Cuatro Vientos (July '17) 9,7 Book Value Land appreciation gain IRR (USD) Farmland Sales in Brazil (BRL million) 17 11,70% 12,08% 9,23% 12,9 13 9,9 10, ,2 Araucaria (May '17 - partial) Araucaria (March '17 - partial) Jatobá (July '17 - partial) 8,9 Book Value Land appreciation gain IRR USD 12

13 Subsequent event: Farmland Sale in Argentina La Esmeralda Farmland USD 19.0 million (USD/ha 2,031) o July 2017: Sign of agreement & payment of USD 4 million o Balance of USD 15 million financed with a mortgage in 4 installments at 4% fixed rate due 2022 o Sign of Deed: June 2018 o o Results will be recognized in the 4Q18 Book Value: ARS 52 million 13

14 Farmland Development Land Transformation Evolution (Accumulated ha overall the region) Land Transformation 2017 vs 2016 (Ha by country) Argentina CAGR (07-17 ) +19,4% Brazil Paraguay 13, ,6* , ,4 9,6** , ,2 2, FY 2016 FY 2017E After CRESCA division (partnership between Brasilagro & Carlos Casado) during FY17 ** 3,300 terminadas y 6,300 pendientes de terminación 14 14

15 Our largest Farmland Development Case Los Pozos, Salta ARGENTINA Turnaround of a Cattle farm into Cattle & Crop Farmland Has: Cattle infrastructure Investment USD/ha ,000 heads in 44,000 ha Land Price: USD/ha Bare Land Acquisition Cost USD/Ha. 10 Crop Investment USD/ha ,000 ha Land Price USD/Ha

16 Farmland Development Cases Agroriego, San Luis (ARGENTINA) Turnaround of Undeveloped Land into a regular crop production Technological Investment (equipment, holes & irrigation system) USD/Ha Has: Beef Cattle Low productivity farm Low rainfalls levels & underground water resources Acquisition Cost USD/Ha 700 Best Yielding Farm Land Price: ~ USD/ha

17 Investment in FyO: Main activities MAIN SERVICES Cresud Stake: 59,59% Brokerage Derivatives Exports Specialties Freights & Logistics Trading Grain Elevator Consultancy Portfolio Management Training VOLUME (Grain Traded Tons (Millions) MARKET SHARE (fyo s share / total commercialized in Argentina) Soybean Corn 17

18 Investment in Carnes Pampeanas Meatpacking Facility Brief description of the company Carnes Pampeanas is a beef processing company - staffed by a highly professional team -dedicated to the production of prime quality food products - starting from the highest quality cattle - fulfilling the most demanding quality standards. The beef packing plant is one of the country s most modern It counts with all necessary permits for export to the demanding European and Asian markets, apart from providing quality beef cuts to Brazil and Chile. With the brand Carnes Pampeanas the company markets chilled and frozen beef, cattle offal and other byproducts. 18

19 Meatpacking: Location & technical conditions Strategic Location The following outlines the cattle stock of Argentina, detailed by province, where you can appreciate the strategic location of the plant in the area of highest density of cattle and this strategic component in trade policy and competitiveness plant. Due to its location in the city of Santa Rosa (La Pampa), the production comes from premium Angus and Hereford steers bred extensively in the fertile Pampas plains Stock vacuno > Technical conditions of meat packing plant The processing capacity is 9,600 heads per month It has all licenses and permits required by law. Fuente: Elaboración propia, en base a vacunación SENASA

20 Investment in IRSA: Leading Real Estate Company Leading real estate company in Argentina with opportunistic assets abroad. 94.6% of IRSA Propiedades Comerciales, leading commercial real estate company in Argentina with ~427,000 sqm of GLA located in premium locations. Landbak to develop ~ 3 millon premium sqm ~ 22 years listed in NYSE and MERVAL 94.61% 29.91% HOTELS LANDBANK INTERNACIONAL VP 28.5% 68.3% 49.0% SHOPPINGS OFFICES 20

21 Cresud Stand Alone Debt as of March 31, 2017 Debt Description Agribusiness Amount (USD MM) Cresud Total Debt Cash & ST Investments 2.5 Cresud Net Debt Debt Amortization Schedule (Cresud Standalone - USD million) 188,1 51,5 56,4 40,8 11,

22 Land is our Value Thanks!